We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

CAD: Following yesterday’s dovish BoC hold, the Canadian Dollar has weakened further with the latest dip caused by the renewed sell-off in oil prices ahead of the OPEC meeting. Today saw BoC Governor Poloz raise concerns that the economy may slow further than expected, adding that oil prices are significantly below the BoC’s forecasts in October. USDCAD hovers above 1.34, a break of 1.3450 keeps the uptrend intact.

AUD: The Australian Dollar is on the backfoot once again as trade war optimism fades rapidly after the Canada arrests Huawei’s CFO at the request of US authorities. Consequently, this has put positive progress on trade discussions between the US and China in doubt, in turn weighing on the AUD. Alongside this, while RBA Debelle highlighted that the next move in interest rates is most likely up, the rate setter did note that there could be scope for a cut, further prompting a pronounced sell-off in the AUD.

Oil: WTI and Brent crude futures sold off heavily in the European morning as the Saudi Arabia signalled that not only were they prepared for no agreement to cut production but also that cuts may be around the 1mbpd mark, which is slightly below consensus (1.2-1.3mbpd). Elsewhere, the spill-over from trade war concerns added to the bearish sentiment in oil prices. Official OPEC announcement scheduled from 1500GMT.

USDCAD: Data shows 16.3% of traders are net-long with the ratio of traders short to long at 5.15 to 1. In fact, traders have remained net-short since Oct 09 when USDCAD traded near 1.28092; price has moved 4.5% higher since then. The number of traders net-long is 45.7% lower than yesterday and 49.8% lower from last week, while the number of traders net-short is 48.2% higher than yesterday and 23.4% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDCAD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USDCAD-bullish contrarian trading bias

About your FOREX.com Demo Account

A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment. Results achieved on the demo account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the demo account. Conditions in the demo account cannot always reasonably reflect all of the market conditions that may affect pricing and execution in a live trading environment.

Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Forex trading involves risk. Losses can exceed deposits. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.

FX Publications Inc (dba DailyFX) is registered with the Commodities Futures Trading Commission as a Guaranteed Introducing Broker and is a member of the National Futures Association (ID# 0517400). Registered Address: 32 Old Slip, Suite 803; New York, NY 10005.